Top 3 ETFs to take advantage of disruptive technology
What’s up Profit Zone Gang!
In today’s edition, we’re going to be talking technology stocks. More importantly, technology Exchange Traded Funds (ETFs). I’m going to be covering the benefits of investing in Tech ETFs compared to individual companies, I’m going to be highlighting the cons, showing you the performance of some of my favorite ETFs, and giving you a little sneak peek at my favorite 3 ETFs right now!
Let’s begin, shall we?
Why Should You Be Investing in Tech ETFs
Let’s face it, most investors have no idea how to value a tech stock. It’s not an exact science, it’s all based on perspective and that’s what makes it extremely difficult. Sure, there are some ratios you can use to help you develop a clearer picture, you can analyze financial statements (which most investors don’t do anyway), you can identify trends within past performance, but at the end of the day, it’s an extremely challenging task.
Let’s use Tesla as an example. Investor A may believe Tesla still has plenty of room to grow. They’re a market leader in a growing electric vehicle industry, they have plenty of cash on hand, they’re well positioned as the future of travel and led by a multi-billionaire Elon Musk who is 100% a genius among common men.
But investor B may think the complete opposite. They may believe that Tesla’s price to earnings (P/E) ratio of 345 makes the company much too overvalued. They may believe that its market cap of $1 trillion doesn’t reflect the intrinsic value of the company. They may also have a tough time justifying investing in a company whose CEO could tweet something stupid and drop the stock price by 20%.
No matter which way you look at it, someone is always going to have a different opinion. What’s important is that you build your own convictions with the data that’s right in front of you.
But to this day, the best way to fight back against not knowing how to value a technology stock is to just own all of them. ETFs make that possible for an everyday retail investor like you and me. And they sure as hell will save you the headache.